India and Korea have acknowledged the widening trade deficit between the two countries since the bilateral Comprehensive Economic Partnership Agreement (CEPA) came into force in 2010 and agreed to address New Delhi’s problem within the overall trade pact framework, per the government.The two countries also decided to constitute sub-groups to discuss cooperation in digital trade, supply chain, and strategic industrial sectors as part of the ongoing talks on upgrading the India-Korea CEPA (IK-CEPA).The discussions took place at the 12th round meeting on the up-gradation of the existing IK CEPA New Delhi from May 25-27 2026.“Both sides reviewed the progress achieved so far in the IK CEPA upgrade negotiations. The discussions were held in a constructive and cooperative spirit, reflecting the strong bilateral relationship and the ‘futuristic partnership’ envisioned by Prime Ministeri Narendra Modi and Korean President Lee Jae-myung,” a statement issued by the Commerce Department on Thursday noted.During the current round, discussions were held on trade in goods, trade in services, Rules of Origin (RoO) and Origin Procedures (OP), investment, and Sanitary and Phytosanitary (SPS) standards.Exports to KoreaIndia’s exports to Korea increased 3.31 per cent to $6 billion in 2025-26. Imports grew 1.38 per cent to $ 21.35 billion in 2025-26. The trade deficit widened to $ 15.35 billion in 2025-26, from $ 15.2 billion in 2024-25.When the India-Korea CEPA kicked off in 2010, India’s trade deficit with South Korea was around $ 5-6 billion.“Both sides acknowledged India’s bilateral trade deficit, which has risen significantly since the IK CEPA came into force in 2010, and agreed to address the issue within the overall IK CEPA framework,” the statement noted.Published on May 28, 2026